Bitcoin Soars Above $900 As China Opens

Tyler Durden's picture

For the 3rd night in a row, China opens with a panic bid for Bitcoin. The cryptocurrency is now up over 14% in less than 3 days, topping $900 for the first time since December 2013. Interestingly yuan is not moving much tonight.

The USD price for a Bictoin has soared over 14% in the last 2 days. We first warned of this 'outlet' for Chinese capital in September 2015 when Bitcoin was trading around $200...now it is topping $900...

 

And volume is very heavy once again from China...

 

Getting very close to record highs...

 

As a reminder, back in 2013, the government classified bitcoin as a commodity and not currency, placing it outside the purview of the foreign-exchange regulator, the people said.  That does not mean, however, that China is powerless at limiting bitcoin's upside.

Several Chinese government bodies including the People’s Bank of China and the financial regulators said in a joint notice that year that bitcoin functioned like a digital commodity without the legal status of a currency. The central bank said in January it is studying the prospects of issuing its own digital currency and aims to roll out a product as soon as possible.

While China dominates bitcoin mining and trading, the government has shown caution over its spread in the nation. In 2013, the PBOC barred financial institutions from handling bitcoin transactions.

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buckstopshere's picture

In an unrigged market gold and silver would be soaring alongside bitcoin.

Because of the manipulation the true bargain is in the precious metals and in physical form, not digital or paper.

J S Bach's picture

Bitcoin shmitcoin.  All that matters is that the pseudo world-fiat currencies fall.

What inevitably replaces them is what the bitcoin/gold bug crowd are gambling/worried about.

stacking12321's picture

False dichotomy.
Gold and bitcoin are complementary, and they serve different functions.

Prisoners_dilemna's picture

BTC is money.

Gold is for doorstops??

;P

38BWD22's picture

 

 

134,000 in BTC traded (just on exchanges, "trades") in one hour.  

$120,000,000 just in TRADING in one hour.

China was almost 97% of the world's trades in that period (yes, I know, fiatleak has its own issues, but still...).

Watch the world trade Bitcoin:

http://fiatleak.com/

 

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) 38BWD22 Dec 23, 2016 1:12 AM

fiatleak is a great site Bearing guy!

Buy Bitcoin until you're fingers bleed! (Mine already do but that's from spamming so many message boards and blogs!)

https://localbitcoins.com

BlackSoul's picture

I have a BTC account set up, will be sweet if you could loan me $50 worth. What says you?

Bay of Pigs's picture

See, I told you. A Chinese driven asset bubble.

What part of that do you guys miss?

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Bay of Pigs Dec 23, 2016 4:07 AM

Bitcoin is waaaay bigger than China BOP.

JRev's picture

...isn't that why goldbugs are always buying metals? t3h chineez are buyin' it all 'n the grate reeset izza kummin!!11!

Not that there isn't a kind of logic at work here, but the hypocrisy is simply deafening.

debtor of last resort's picture

Largest exchange must be in Macau.

J S Bach's picture

You can't put a bitcoin in your pocket, sir.  Gold and silver will ALWAYS be fungible currency... like it or not.

Prisoners_dilemna's picture

I do like it.

 

I went fishing not long ago to the Pacific Northwest. I flew from Seattle to Vancouver. Midflgiht we were given forms to declare currency over 10k.

In my Electrum brain wallet I had well above the "need to declare" amount of BTC. I didn't declare a thing and no one was the wiser. I couldnt do that with my PMs.

This is what appeals to the Chinamen??

eforce's picture

Bitcoin will sore as the global economic gets worse, once the banks start collapsing major league so will Bitcoin as it relies on exchanges that are backed by such banks, then silver/gold etc. will be set free and the majority of the peasants will be left in poverty.

So speculate with Bitcoin to get more cash to buy metals with, but heed my warning and don't stay on the bull train too long.

Prisoners_dilemna's picture

I've heard that wisdom from at least four people now. In person and on ZH.    I want to ride this to the very end. But I will consider your words.

 

I'm young enough to recover from mistakes. I'm old enough to have melted from a snowflake. Now I'm water.

https://www.youtube.com/watch?v=APx2yFA0-B4

 

It's either PMs/BTC or death.     I'm just happy one of my honest monies is finally performing.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Prisoners_dilemna Dec 23, 2016 1:30 AM

I was thinking about this five years ago... that ultimately each Bitcoin will grow in size to the point that it will have a gravitational effect on the Fiat Universe and tear the Fiat Universe apart.

And I don't think they can control/naked short BTC the way they do Gold & Silver. Comex/LBMA/Miners are the bottle-necks in that universe and the bad guys control all of them. But Bitcoin is a truly global "cash and carry" market that can't be controlled.

Zorrohodge's picture

I worry that you can manipulate it but it's too small to bother as yet.

A big exchange could be bought/infiltrated by a government and they could do a mtgox and just fake it/ disappear people's Bitcoins.

Don't trust exchanges hold it/own it etc.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) eforce Dec 23, 2016 1:13 AM

I think you meant to say it will "soar". But I think Bitcoin is going to leave a lot of bankster's ass sore! ;)

Navajo_Flyer's picture

I was able to purchase 80 Mexican Silver Libertads by trading 1.7 BTC which I bout for $50 uds.  I felt invincible today!

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Navajo_Flyer Dec 23, 2016 4:09 AM

Gee don't know why you would trade your BTC for some shitty silver?

Save_America1st's picture

yes you could have.   a bitgold/goldmoney acount with the goldmoney mastercard is funded by your gold holdings and so you can use your card anywhere. 

Bay of Pigs's picture

I have flown plenty of times with gold and silver above that level and never been hassled.

Get. Fucked.

mrees999's picture

You keep that much on you when you travel?  Hmmm.  Just out of curiousity, when are you flying again?  Where to?  What do you look like?  Never mind, I'm sure somebody can google that.

Now, what you COULD do, is download a JAXX mobile phone wallet app. It will have you write 12 random english words down with a pen and paper. These are called your "Seed" words. transfer ...oh I don't know say $1,000,000 onto it. Then... wait for it....

Delete your wallet app.  Destroy your phone, burn it ... whatever.   Then... travel anywhere in the world, just remember the 12 seed words you wrote down.  Then the magic happens.

You download the software again. On any phone.  Choose to "Recover" your wallet.  Input the 12 seed words and.... wait for it.... 

Your money is back!   Just like that!  12 words were litterally worth $1,000,000 anywhere in the world.  Let's see you do that with your gold and silver.

 

Somebody was saying something about intrinsic value?

roddy6667's picture

You were lucky. What you are doing is not smart. Gold and silver show on metal detectors and other screening devices. Flying out of Seoul last Fall, security went through my carry-on bag in minute detail, every small item was scrutinized. They patted me down and even found a small piece of plastic in my back pocket and examined it. Coins would have been found immediately. At least they were polite about it. They usually have good-looking twenty-something women to do the groping, so I did not mind.

mrees999's picture

Sorry, you can put bitcoins in your pocket.

trezor hardware wallet

http://bitcointrezor.com/

 

Keepkey hardware wallet

https://www.keepkey.com/

 

Ledger Hardware wallet.

https://www.ledgerwallet.com/

JRev's picture

Can't speak for KeepKey or Ledger but Trezor kicks ass.

And now there's OpenDime, a (very) cheap HW wallet designed to replace cumbersome paper wallets for physical transactions!

https://opendime.com/

As always, remember to keep your private keys and coins to yourself on a trusted wallet:

https://electrum.org/#home

...or if you're on Android, support the Samourai project and their efforts to make BTC truly anonymous and fungible:

http://samouraiwallet.com/

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Prisoners_dilemna Dec 23, 2016 1:09 AM

YES!!

Bitcoins are REAL Money!

Lore's picture

The mousetrap doth snappeth shut soon, methinks. 

buckstopshere's picture

Bitcoin has no intrinsic value.

It also relies on computer networks that are monitored for suspicious activity.

ebworthen's picture

It's almost as sure a thing as shares on the Shanghai!

Arnold's picture

You describe fiatski to a tee.

froze25's picture

It's value is its security from counterfeiting and the ability to conduct electronic transactions with it in a peer to peer private manner it's intrinsic value is completely fictional, it's only worth what people believe they can exchange it for.  It does have the potential to be huge but only if enough people choose to use it. Eventually it will hit a tipping point. 

buckstopshere's picture

Quantum computers will make bitcoin worthless.

Bunga Bunga's picture

ECDSA can be replaced by quantum hard cryptography per softfork. Sha256 cannot be easily cracked by quantum computers. Even without modifications bitcoins cannot be stolen as long as you don't reveal the public key.

One World Mafia's picture

You do know SHA256 was designed by the NSA who never released cryptography to the wild that didn't transpire to have a backdoor, right?  The NSA was studying cryptocurrencies at least as early as 1996.

mrees999's picture

I think you've already proven your (un)reliablity on the topic, but since you are on Quantum... Who are these people that make quantum computers?  You think they are the same experts who create cryptography to begin with?  Let me provide the people you are misinforming the facts (I really doubt I'll actually teach you anything as you're bias is already proven and likely impossible to overcome).

 

Bitcoin is protected with Sha256 (there are various flavors of this including one that was "salted' by the NSA that was never used in bitcoin. and no longer used by the rest of the world).  The version in bitcoin is the same exact version that the US military and ...wait for it... The ENTIRE WORLD BANKING SYSTEM!  Since bitcoin is less than 20 billion dollars (currently) and the WORLD BANKING SYSTEM is around 80 trillion is US Dollars, logically you would think that THE WORLD BANKING SYSTEM would have more to fear than piddly bitcoin. If fact the entire internet itself and all private messaging of every kind will need to be reworked. So bitcoin would likely be the very least of your worries.

But let's say they do crack sha256. Let's compare how hard they would be to 'fix' and make quantium proof.  Bitcoin would have to change.... a few lines of code. Let's just say that the world of cryptography hasn't been all that thrilling in 40 years until bitcoin and cryptocurrencies brought about a resurgence.  So, you can say that pretty much anybody who is anybody has both feet and hands in the world of cryptocurrencies as this as kick-started the industry again and the best (AND I MEAN BEST) minds in the world are on this topic.

How hard would it be to get the ENTIRE WORLD BANKING system to change all of their various networks and computers to use something different?  Oh wait, they use the SWIFT banking system that has already been hacked several times this last year already. Oops, that means bitcoin is already safer. No wonder then ENTIRE WORLD BANKING SYSTEM is looking to rework their network on top of bitcoin's blockchain engine.

 

Bucky COULD have done a quick google search on the terms rather than speaking on a topic he obviously know nothing.  Like one of dozens just right here:

http://www.bitcoinnotbombs.com/bitcoin-vs-the-nsas-quantum-computer/

Does anybody really listen to Bucky's advice on the this topic? He's probably just as knowledgeable and opinionated on brain surgery but I wouldn't be taking medical advice from him either.

Warning: unless you are a super tech \ math nerd much of the linked article might make your brain hurt.

 

 

 

Prisoners_dilemna's picture

Said another way...

It's scarce and has utility.

Anything that is sufficiently scarce and can be utilized will have a market price.

Intrinsic value arises from those two factors.

Save_America1st's picture

true... but nothing wrong with riding it up with yuuuuge gains and flipping the profits for free phyzz.   

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) buckstopshere Dec 23, 2016 1:09 AM

There is no such thing as "intrinsic value" you tards!

mrees999's picture

The world "Value" itself is subjective. So in that sense, you are correct. Intrisnic only means 'from within'. There are several properties that are intenretal to the token and the network, blockchain, privacy, immutablity, and so on that are internal to bitcoin. It has utility, probably more more than gold or silver for emerging modern technology. Blue Tooth Speakers weren't very valuaable 20 years ago - until its time had come. 

So we have intrinsic subjective value.  Who cares?  As long as SOMEBODY in the world values a borderless world currency - it has value. It really doesn't matter if you find it valuable yourself - if somebody does and is willing to trade their national currencies for it in an amount that raises the price enough that others would be willing to sell theirs to buy a national currency - it. has. value.  That part is objective as we can all obverve the trades on the open markets.

 

Wikipidea "Subjective Value Theory" and "Intrinsic Value" Somewhere in the middle you'll find a place in your mind for bitcoin.

Then look at the market price- currently over $900 is exchanged for dollars...and much more where cash is being destroyed or confiscated as bitcoin has become a lifeline. Eventually people in REAL NEED of the currency to survive will pay ANY PRICE for it. The price will equalize as bitcoin will rush to the place it's valued more - and drain the supply from other areas of the world. Then to attrack the bitcoin back, the rest of the world must raise its price for it to attract it back. Hence the price rises all over the world.  And nobody stopped to ask your subjective opinion about it.

 

So what were you saying about it not having any intrinsic value?

 

 

Bunga Bunga's picture

Value is an assignment by humans, cost to produce is something real, since it can be measured.

Zorrohodge's picture

Zerohedge Sentiment on Bitcoin has come a long way in this past year you would have had many upvotes for this comment a year ago.

BeanusCountus's picture

Please explain further. Nothing against Bitcoin. Curious how it's value as a store of wealth is better than a precious metal. Bitcoin rockets upward while gold/silver drop? A puzzle.

buckstopshere's picture

The banks can't short bitcoin with derivatives yet.

Quantum computers will make 256-bit AES encryption useless. Bitcoin will become worthless as encryption and privacy are essential for bitcoin.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) buckstopshere Dec 23, 2016 1:10 AM

Quantum computing won't effect Bitcoin at all, you don't know what the f#ck you are talking about.

Save_America1st's picture

well let me explain further:  buy btc...and as it blows up use the free fiat to stack the cheaper phyzz. 

it ain't fuckin rocket surgery bitchez ;-) 

 

buckstopshere's picture

Diversification is fine.

I trust gold and silver more than I do bitcoin.

If I see central banks stacking bitcoin, then maybe I'll get into bitcoin.